Free HR calculator
Cost of Employee Turnover Calculator
Replacing an employee involves departure expenses, vacancy costs, hiring, onboarding, and the time needed to reach full productivity. Gallup has estimated replacement costs at one-half to two times annual salary. Enter your figures for each stage to estimate the cost for this role.
About this calculator
Method note: What employee turnover actually costs Note reviewed:
What to expect Start with the role's annual salary, number of departures, and exit expenses. Then add hiring, vacancy, and ramp-up figures. The calculation takes about three minutes.
The role
Separation
Replacement cost details
During the vacancy
Recruiting and hiring
Onboarding and ramp-up
Cost per departure
Where turnover costs come from
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How the calculation works
What employee turnover costs
Gallup has estimated replacement costs at one-half to twice annual salary. In 2019, Gallup estimated the annual cost of voluntary turnover to US businesses at $1 trillion. The calculation separates departure expenses, vacancy costs, recruiting, onboarding, and lost productivity. It shows direct spending alongside the estimated cost of reduced output and overtime.
The example includes $5,475 in recruiting costs, matching SHRM's 2025 nonexecutive average. SHRM also reported a $1,200 median. Both figures appear in the cost per hire note.
The six-month ramp draws on a 2014 Oxford Economics study of five UK sectors that reported about 28 weeks to full productivity. The onboarding note explains the research.
The 50% vacancy assumption estimates coverage and lost output costs. The 50% ramp productivity assumption represents productivity increasing steadily from zero to full output. Adjust both assumptions to reflect the role.
Sources reviewed 9 October 2026. Gallup, This Fixable Problem Costs U.S. Businesses $1 Trillion, 2019, gallup.com. SHRM, SHRM Releases 2025 Benchmarking Reports, press release, 15 October 2025, shrm.org. SHRM, 2025 Recruiting Executives Benchmarking, data brief, 2025, shrm.org (PDF). Oxford Economics, The Cost of Brain Drain, 2014, as reported by HR Review on 25 February 2014, hrreview.co.uk. U.S. Department of Labor, Wage and Hour Division, Fact Sheet #23: Overtime Pay Requirements of the FLSA, dol.gov.
See the cost categories
Separation
Departure expenses include HR and manager time, exit processing, accrued paid time off payouts, and severance.
Vacancy
The example uses a 50% vacancy assumption to estimate overtime expenses, temporary coverage costs, and lost output. It assigns a cost equal to 50% of daily pay for each vacant working day.
Recruiting
Recruiting costs include advertising, agency fees, interview time, background checks, and assessments.
Onboarding and training
Onboarding costs include training, materials, equipment, and setup.
Productivity during ramp-up
The calculator estimates lost productivity using salary, months to full output, and average productivity during that period.
Compare replacement costs across roles
See which roles cost the most to replace
Use the Cost of Turnover Calculator workbook to compare replacement costs across roles. Copy the worksheet for each position and review the visible formulas. The Benchmark and Summary tabs help you prepare your findings for leadership.
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